Kerry Group Plc · EURONEXT:KRZ
Kerry — Investor Day (April 2016)
37 slides from Kerry's investor day presentation, April 2016
Slide 1: Kerry Investor Day
Kerry Investor Day April 2016 aT | | it | OD iim Mi Global Centre
Slide 2: Forward looking statements
This presentation/announcement may contain forward looking statements with projections regarding, among other things, the Company’s strategy, revenues, earnings, trading profit, trading margin, finance costs, tax rate, capital expenditure, dividends, cash flow, net debt or other financial measures,
Slide 3: Kerry Overview
Kerry Overview Stan McCarthy Chief Executive Officer
Slide 4: Agenda
Agenda KERRY Group/Kerry’s Breakout Group Lunch Breakout Performance / Taste & Nutrition | Experiences *3 Served Experiences *3 Closing / Q&A Journey * Stan McCarthy * Tour Leads All » Tour Leads * Brian Mehigan * Andy Royston + Stan McCarthy ° Albert McQuaid All 10.15— 10.45 11.00 — 12.30 12.45 — 1
Slide 5: Key Milestones
Key Milestones 1972 1986 1988 1993 1998 2000 2010 2015 Kerry Listed on Acquisition Enter Enter Evolving 1 Kerry Global Technology formed Irish Stock of Beatreme Latin Asia-Pacific Technology programme & Innovation Exchange in US America Platforms Centre architecture complete Savoury & Dairy Ingredie
Slide 6: €6.1bn Revenue €700m Trading Profit
€6.1bn Revenue €700m Trading Profit Taste & Nutrition Taste & Nutrition Consumer Foods Consumer Foods ENTERPRISE VALUE* PRODUCTION LOCATIONS EMPLOYEES Note: * As at 18-4-2016 6
Slide 7: 6,105 50.0 301.9 7.6 0.48
6,105 700 337 14 50.0 301.9 7.6 0.48 7
Slide 8: Acquisitions
60 Acquisitions Emulsifiers, Hydrocolloids, Yeast, Proteins, Enzymes, Cultures, Fermented Ingredients Beverage Flavour & Bases, Syrups & Sauces, Brewing Ingredients Cell Nutrition, 34 Acquisitions Excipients 8
Slide 9: Taste, Go-to-market strategy, Growth platforms
✔ ✔ ✔ • Taste • Go-to-market strategy • Growth platforms • Nutrition • Operating model • Disposals • Developing markets • Kerryconnect 9
Slide 10: No. 1 Partner to the Food & Beverage Industry
No. 1 Partner to the Food & Beverage Industry KERRY Market Leadership is} Consumer (a! Taste & Nutrition Foods Consumer Channel Customer Nutrition & General Developing Geography Wellness Markets Sustainability 1 Kerry 10
Slide 11: Revenue breakdown by market
24% Beverage 18% Meats 9% Dairy 41% Savoury & Dairy 9% Bakery 21% Beverage 6% Cereal & Bars 16% Cereal & Sweet 6% Soups, Sauces & Dressings 5% Ice-cream & Desserts 15% Pharma/Functional Ingredients 5% Prepared Meals & Side Dishes 7% Regional Ingredients 5% Savoury Snacks 5% Pharma 4% Confectionery 2
Slide 12: Kerry's Taste & Nutrition Journey
Kerry’s Taste & Nutrition Journey Andy Royston Chief Marketing Officer Taste & Nutrition
Slide 13: Consumer trends
Shrinking middle class Life is an experience Less personal time Back to basics Millennial growth Instant gratification Convenience Active healthy lifestyle Urban centres growing Social responsibility Snacking culture Real food / clean label Single households Value seeking Trust is key 13
Slide 14: The New Consumer
The New Consumer KERRY - Artificial * Frozen -Packaged -Unhealthy *Processed »Boxed meals *Clean label - Authentic - Value - Healthy - Prepared food Fresh 14
Slide 15: Trends Driving Foodservice Traffic
Trends Driving Foodservice Traffic KERRY Fresh & Clean 4 we > a Snacking Premiumisation Customisation od ay Indulgence 15
Slide 16: Food & Health Survey
International Food Information Council, Food & Health Survey, 2014 (% rating 4 to 5 on 5-point scale, from No Impact to a Great Impact) 16
Slide 17: Kerry — The No. 1 Taste & Nutrition Company
Kerry — The No. 1 Taste & Nutrition Company _—s Reasons to Believe Food & Beverage Heritage Insights & Innovation Science & Technology Applications & Culinary Excellence 4 Unrivalled Taste & Nutrition Solutions SS
Slide 18: Kerry's Unique Capabilities
Kerry’s Unique Capabilities Albert McQuaid Chief Innovation Officer Taste & Nutrition
Slide 19: The Recipe for Success
The Recipe for Success KERRY Science and Technology Holistic Partnerships 19
Slide 20: Science & Technology Expertise
Science & Technology Expertise KERRY No. 1 for investment in R&D Leading Spend Global Technology & Innovation Centre Architecture ° Acquired Technology Unique Holistic Technology Model Nutrition & General Wellness Fundamental Science & Research 20
Slide 21: Kerry Taste Research Programme
Kerry Taste Research Programme Savoury Taste Technology Natural/ Susanne Salt Dairy Taste Smoke & Grill Extracts Perception Consumer g Pure & Simple rc) Pleasure & Indulgence Fresh & Invigorating Authentic & Familiar Analysis Sensory Excellence, Molecular Analytical, Regulatory Process Distillation
Slide 22: Kerry Nutrition Research Programme
Kerry Nutrition Research Programme KERRY Infant & Children & Early Toddlers Adolescents Adulthood Lifestage Seniors Digestive Health —————_ Weight Management Allergies & Immunity —_——— Muscle Health General Wellness 22
Slide 23: Global & Regional Technology & Innovation Centres
Global & Regional Technology & Innovation Centres Manufacturing Plants Sales Offices Note: * As at 31-12-2015 23
Slide 24: Holistic Business Partnerships
Holistic Business Partnerships mw CUSTOMER ‘§ Enabled by Customer Intimacy & Consumer Insights CUSTOMER PURCHASING -a AG ay- °F + Proprietary approach delivering insights \ / Intimate customer knowledge + Deep, multi-functional relationships * Digital engagement and omni-channel CUSTOMER MANUFACTURI
Slide 25: Financial Overview
Financial Overview Brian Mehigan Chief Financial Officer
Slide 26: Consistent Delivery in a Volatile and Changing Environment
Consistent Delivery in a Volatile and Changing Environment Global Market Growth Ze, /,» bey Consumer — unprecedented era of change a Economic & Geopolitical Instabilities currency Volatility USD 3% Raw Material Prices <1 - ZAR BRL Currency Volatility Raw Material Prices we
Slide 27: EPS and ROACE
EPS* CENT ROACE % 350 13.6% 14% 325 300 301.9 12% 275 10.8% 278.9 250 257.9 10% 234.0 225 213.4 200 8% 192.1 175 163.9 150 6% 151.8 142.4 125 132.8 100 4% 75 2% 50 25 0% 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 EPS* ROACE* 27
Slide 28: Volume growth and margin expansion targets
VOLUME GROWTH MARGIN EXPANSION Taste & Nutrition 4% to 6% p.a. Taste & Nutrition 50 bps p.a. Consumer Foods 2% to 3% p.a. Consumer Foods 20 bps p.a. Group 3% to 5% p.a.** Group 30 bps p.a. (** assumes market growth rate of 2% to 3% p.a.) (plus an additional 100 bps from Kerryconnect project) CFROI 1
Slide 29: Progress vs Current Strategic Plan (2013-17)
KERRY Progress vs Current Strategic Plan (2013-17) KPI Target 3 Year Average Adjusted EPS growth 10%+ 8.8% Volume growth 3% - 5%* 3.1% Margin expansion +30bps +60bps Returns *assumes market growth rate of 2% to 3% p.a. 29
Slide 30: Leverage and covenants
878 453 412 749 344 726 303 687 279 629 2011 2012** 2013 2014 2015 2011 2012** 2013 2014 2015 3.5x 20.0x Covenant = <3.5x 3.0x 15.0x 2.5x 10.0x 2.0x 5.0x 1.5x Covenant = >4.75x 1.0x 0.0x 2011 2012** 2013 2014 2015 2011 2012** 2013 2014 2015 30
Slide 31: Why Kerry?
Why Kerry? Proven Success Technology Leader Growth Potential Sustainable KERRY a1
Slide 32: Closing / Q&A
Closing / Q&A Stan McCarthy Chief Executive Officer
Slide 33: No. 1 Partner to the Food & Beverage Industry
No. 1 Partner to the Food & Beverage Industry KERRY Market Leadership is} Consumer (a! Taste & Nutrition Foods Consumer Channel Customer Nutrition & General Developing Geography Wellness Markets Sustainability 1 Kerry 33
Slide 34: Kerry's Unique Holistic Technology Model
Kerry’s Unique Holistic Technology Model KERRY Consumer & Market Insights Nutrition & General Wellness Food Science Process Technology Fundamental Science & Research 34
Slide 35: Kerry — The No. 1 Taste & Nutrition Company
Kerry — The No. 1 Taste & Nutrition Company _—s Reasons to Believe Food & Beverage Heritage Insights & Innovation Science & Technology Applications & Culinary Excellence 4 Unrivalled Taste & Nutrition Solutions SS
Slide 36: The Recipe for Success
The Recipe for Success KERRY Science and Technology Holistic Partnerships 36
Slide 37: Kerry Investor Day
Kerry Investor Day April 2016 aT | | it | OD iim Mi Global Centre